Prairie Grove looks at flat tax levy
PRAIRIE GROVE – The Prairie Grove Village Board is set to consider a flat levy at its meeting Tuesday.
The board could also decide to lower it as it has done for the past three years, Village Administrator Jeannine Smith said.
“This board takes a very conscientious look at where the funds are coming from, where we can make cuts if necessary,” she said. “We look at the economy. It’s like taking out a crystal ball to determine what the village is going to look economically next year.”
The board also looks at the village’s fund balance when deciding what to levy, Smith said. The aim is to “keep enough reserves to cover [the village] in the event of an emergency,” or between 35 and 50 percent of expenditures.
By the end of the 2012-13 fiscal year, the village had increased its fund balance by about $82,000 to nearly $750,000. That means it had about 185 days of cash on hand.
Over the last five years, the amount of cash Prairie Grove has had in the bank has fluctuated between 134 days and 185 days.
To preserve that fund balance, the board is discussing going out for bonds to fund road improvements like it did in 2009, Smith said.
The village receives about $40,000 annually in motor fuel tax dollars, but that just about covers the village’s salt expenses, she said.
A hearing is scheduled for Jan. 14 at the Prairie Grove Village Hall, 3125 Barreville Road.